693005 - 693035Capital Information Technology Equipment & Capital IT Intangible AssetsRepairs or other non-capitalized costs should not be charged to the above account code groups. The non-capitalized account codes in the 682005 – 682115 account code range will be inactivated in the new fiscal year.

Repairs and similar costs should be charged to the repairs account code group. Codes currently indicated as “Repair Services Capitalized” and “Repair Supplies Capitalized” will be inactivated in the new fiscal year. If the costs are truly capitalized improvements, they should be charged to one of the above codes for capitalized costs. If the costs are truly repairs, they should be charged to one of the codes in the repair account code group (591025 – 591105), as shown below:

Codes for Repair Costs

Account

Account Description

Guideline

591000

Repairs

for budget use only

591025

Maintenance Agreements

OK to use

591070

Repairs IT

OK to use

591095

Repair Services Non-capitalized

OK to use

591105

Repair Supplies Non-capitalized

OK to use

591090

Repair Services Capitalized

Inactive effective 7/1/2011

591100

Repair Supplies Capitalized

Inactive effective 7/1/2011

Judgment is required to determine whether a cost is a repair or a capital improvement. Maintenance and other costs to maintain an asset in its normal state are considered repairs. Costs to replace an existing asset or asset portion with an improved or superior asset, usually at a cost materially in excess of the replace item, are considered capitalized improvements.Materiality thresholds also apply. Improvements of less than $5,000 to equipment items should be considered repairs. Improvements of less than $10,000 to buildings, land, or infrastructure items should be considered repairs.If you have any questions on repairs vs. improvements, contact the Accounting Office.